SUMMARY
- Larsen & Toubro (L&T) is set to acquire a 21% stake in E2E Networks for ₹1,327 crore through a two-part cash deal.
- The acquisition includes a strategic partnership aimed at enhancing cloud solutions and digital transformation in India.
- E2E Networks specializes in cloud computing platforms optimized for AI workloads, leveraging a relationship with NVIDIA.
Engineering conglomerate Larsen & Toubro (L&T) has announced plans to acquire a 21% stake in E2E Networks, an Indian Cloud and AI Cloud provider, in a comprehensive all-cash transaction valued at ₹1,327 crore. This deal marks a significant step for L&T as it ventures further into the cloud technology sector.
The acquisition will occur in two parts. L&T intends to purchase 4.17 million equity shares of E2E Networks, with 15% of the stake being acquired through a preferential allotment for ₹1,079.27 crore at a price of ₹3,622.25 per share. The remaining 6% will be acquired directly from the company’s founder for ₹327.75 crore at ₹2,750 per share.
Seema Ambastha, CEO of L&T Data Centre and Cloud Business, emphasized the strategic importance of this partnership, stating, “Collaborating with E2E Networks allows us to offer our clients seamless, scalable, and secure cloud experiences.” This collaboration is designed to deliver a robust cloud ecosystem tailored for Indian businesses seeking to drive growth, optimize costs, and leverage AI and digital transformation.
E2E Networks specializes in providing CPU and GPU-based cloud computing platforms, enabling customers to perform large-scale general and AI workloads. The company’s strategic relationship with NVIDIA further enhances its capabilities in this domain.
Under this strategic partnership, L&T will integrate E2E Networks’ Cloud and AI Cloud platform with its data center management expertise. The collaboration aims to empower startups and enterprises, accelerating digital transformation across various industries and contributing to a technology-driven and sustainable future for India.
The acquisition also positions L&T as a significant player in advancing the adoption of Generative AI solutions in India, potentially transforming how accelerated computing is utilized by organizations.
As part of the deal, L&T will have the right to nominate up to two directors on the board of E2E Networks and will maintain certain rights concerning the transfer of equity shares held by E2E’s promoters, Tarun Dua and Srishti Baweja.
This strategic acquisition and partnership reflect L&T’s commitment to enhancing its cloud service offerings and solidifying its position in the rapidly evolving technology landscape in India.
